The 45 Percent Rule
FAQs for Post Retirement Reemployment
I am retired and receiving monthly benefits from the Connecticut Teacher’s Retirement Board (CTRB). Are there any limitations on the amount of income I can earn as a retiree if I return to Connecticut public school teaching in a Non Subject Shortage Area or in a Non Priority School District?
Yes. You are allowed to earn up to forty-five (45%) percent of the maximum salary level, established by the school district as a public school teacher per school year, while collecting your retirement benefit.
Are there any earnings that are excluded from the earnings limit?
Out of state and private school teaching as well as non teaching assignments in and out of the state are salaries that are excluded.
How would the earnings limit be determined if I work in two districts?
You would pro-rate the amount you can earn between the two districts. For example:
| Employer | Maximum Salary | 45% Rule | Percent of Reemployment Salary By Employer | Allowable | ||
|---|---|---|---|---|---|---|
| One | $90,000 | 45% Rule | 60% | $24,300 | ||
| Two | $80,000 | 45% Rule | 40% | $14,400 | ||
| Total Allowable Earnings | $38,700 | |||||
*Percent of reemployment by employer means how you divide the days you work to reach the compensation limit.
*Percent of reemployment by employer means how you divide the days you work to reach the compensation limit.
May I elect to contribute to CTRB during my period of employment?
No. A reemployed retiree member may not make retirement contributions or earn any additional retirement benefits for the period of post retirement employment.
What happens if the earnings limitation is exceeded during a school year?
You will be required (by law) to reimburse the CTRB all compensation in excess of the allowed amount.
Where do I obtain my health insurance if I am employed temporarily?
You continue to pay for your health insurance as a retired member in the same manner as you did before you began your post retirement employment.